Online Banking Case Study

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Recommended: Advantages and disadvantages of digital banking

5.1.
Online/ Internet Banking is booming each day and the number of people using these services to carry out their banking activities is increasing at a constant rate. As a result of this increased interest in culture of online banking, the concerns over security that is needed to protect e-banking has raised to a great extent. This security is required to shield the transactions as well as to establish a secure mechanism to share and exchange information in order to prevent fraud and safeguard personal data. Strong security measures and mechanisms are a must for the proper and efficient functioning of online banking. Internet has surely enabled the banking sector to grow to a great extent, but on the other hand, it has posed a lot of risks …show more content…

Internet banking being relatively new, can involve legal risks to a high degree. Uncertainties regarding the validity of agreements formed via the electronic media, disputed transactions due to improper precautions in using internet banking products, and/or inadequate information about the rights and obligations to the customers about the use of e-banking products and services are some of the most significant reasons of occurrence of legal risks. Legal risks can also be caused from the banks‘ negligence. For example: A bank could link its website to other websites in order to attract and capture more and more …show more content…

This has been done through scaling borders and bringing out new opportunities for the institutions. In India, it has very strongly impacted the strategic business considerations for banks by cutting down the cost of delivery and transactions significantly. While e-banking provides various benefits to the banks and their customers, but it has also been a cause for the increase in traditional and electronic risks. As compared to developed countries, the developing countries face many hindrances and obstructions that affect the successful implementation of e-banking facilities. Electronic form of banking has various features that can help banks obtain success on the financial market. Some of these features are:  Increased customer satisfaction  Anytime, anywhere access of accounts  Better customer relationship  Expanded product offerings  Extended geographic reach Even with such benefits, electronic form of banking is a risky and challenging

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